SAN FRANCISCO – Affirm Holdings , Inc. (NASDAQ:AFRM), a personal credit institution, disclosed its financial outcomes for the fourth fiscal quarter ended June 30, 2024, today. The company, headquartered in California, provided these details in a Shareholder Letter attached to its Form 8-K filing with the Securities and Exchange Commission.
The letter, which includes both GAAP and non-GAAP financial measures, indicates the company's performance during the quarter. Affirm has included reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures in the letter and the financial tables attached to it. This approach ensures transparency for shareholders and compliance with financial reporting standards.
Affirm's Chief Financial Officer, Michael Linford, signed off on the report, underscoring the company's compliance with the SEC's reporting requirements. The report is based on a press release statement issued by the company and provides a snapshot of Affirm's financial condition as of the end of its fourth fiscal quarter.
In other recent news, Affirm Holdings Inc. has been the subject of various developments and analyst reviews. Mizuho reiterated its Outperform rating on Affirm, projecting potential GAAP profitability by the fourth quarter of FY25 due to reduced expenses and scaling operations. In contrast, Morgan Stanley maintained an underweight rating, expressing skepticism about the company's ability to maintain or increase yields on its platform portfolio.
Affirm has also expanded its partnerships, collaborating with Hotels.com and RONA to offer flexible payment options to customers, thereby extending its reach in the travel, home improvement industries, and the Canadian market. The company has also demonstrated financial management by amending its credit agreement, increasing its borrowing capacity from $205 million to $330 million.
Analysts have given mixed reviews, with Goldman Sachs upgrading Affirm to a 'buy' rating, citing the company's effective credit management, while CFRA maintained a 'sell' rating, forecasting revenues for the fiscal years 2024 to 2026 at $2.3 billion, $2.7 billion, and $3.2 billion respectively. These recent developments offer investors insights into Affirm's strategic direction, financial health, and potential profitability.
InvestingPro Insights
As Affirm Holdings, Inc. navigates the financial landscape, its recent market performance and analyst insights provide a valuable context for investors. According to InvestingPro data, Affirm has experienced a significant return over the last week with a 9.28% price total return, and an even more impressive year-over-year price total return of 81.11%. This suggests a strong short-term performance, which may capture the interest of momentum investors. Despite the lack of profitability in the last twelve months, as indicated by a negative P/E ratio of -14, the company's liquid assets have managed to exceed its short-term obligations, showcasing a degree of financial stability.
Investors should note, however, that analysts do not anticipate Affirm to be profitable this year. This aligns with the reported operating income margin of -36.75% for the last twelve months as of Q3 2024. The company's stock price movements have been quite volatile, which could be a consideration for risk-averse investors. Additionally, Affirm does not pay a dividend, which may influence the investment decisions of those seeking regular income.
For those seeking a deeper analysis, InvestingPro offers additional tips and metrics to evaluate Affirm's financial health and market position. There are 8 more InvestingPro Tips available, which could provide further insights into Affirm's performance and prospects. Interested readers can find these on the InvestingPro platform.
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